Discussion On The Legal Issues Of Inward Documentary Bills

Inward Documentary Bills business is a financing services provided by the bank to the importer in the international business. With the increasing number of trade between nations and the development of global economic integration and international economic relations, This business have also been widely carried out. But by now the related laws and regulations of Inward Documentary Bills under Letter of Credit in China is not perfect, and lack of the relevant judicial interpretations. Banks in the operation of practice for Inward Documentary Bills business, its operating processes and the Trust Law in China and Guarantee law on the content of contradictions:the receipt of trust and mortgage, pledge, guarantee the coexistence of contradictions, the property security and the guarantee of priority of contradictions, the disposal of a pledge of the pledged property the existence of the effectiveness of the contradiction. Bank and Negotiating the applicant disputes the banks face various defenses of the importers and the guarantor, the traditional guarantee system has been insufficient to protect the interests of the bank. In addition, the Inward Documentary Bills business, faced by the negotiating bank customer credit risk, market risk and the risks of trust receipt, makes the bill advance the interests of the line can not be guaranteed. Therefore, the Inward Documentary Bills legal problems, not only has theoretical value and practical significance of the launching of the banking practice.Based on the problems of China's Inward Documentary Bills and related systems through analysis and comparison of domestic and foreign, to improve the legal system of China's Inward Documentary Bills, is to achieve win-win goal of banks and importers to carry out Inward Documentary Bills business as a starting point. Therefore, drawing on effective practice of the foreign system of guarantees, to consider how the banking business in China to carry out normally used in the perfect combination of the trust receipt is the need for real life. The method of transplantation is a very complex work, to avoid the same configuration and compatibility selectively blind transplantation, select the best suitable for their own national conditions and needs of the legal transplant, pay attention to foreign law and national law,systematic attention to the legal system, at the same time the method of transplantation should be appropriate in advance. Reasonable construction of the legal system of China's Inward Documentary Bills, Import Financing Agreement is to improve the practical operation, clear the trust property and collateral pledged in the agreement the subject matter to draw a line, to avoid conceptual confusion caused by the conflict of laws, affect the interests of the bank. Introduced at the system level so that Transferring Guarantee, and trust receipt reasonably undertake to provide balanced protection to the the Bank and Applicant; Trust Public Registry System, the publicity of the ownership status of the trust property to ensure that banks rights and business operations of the Inward Documentary Bills. In addition, it is important to note that banks in the choice of the customer or credit must be careful design security measures to ensure that the interests of the bank.